Life Insurance in South Dakota
Life insurance is a crucial consideration for anyone who is concerned about the future of their beloved ones and wants to protect them from unknown circumstances. However, before purchasing life insurance, the residents of South Dakota should educate themselves on the state standards and regulations.
Life Insurance Regulations and Standards
Life insurance in South Dakota is regulated on the state level by the Codified Laws document. It is a set of laws created to protect businesses and their consumers, which sets the rules for policy requirements and claims procedures. Here are the key parts of the state document highlighted by Wilcoxon Insurance, Inc., located in Sioux Falls, SD:
- All life insurance in the state must have a 10-day free-look period. It is a test period, during which consumers have a right to try the policy for ten days, review it, and then return it for a full refund if they want to. A 10-day period is a minimum, while insurance companies may have longer periods, depending on their policies.
- After filing an insurance claim, an insurance company has two months to make a payment to the customer. If the insurance company does not make the payment on time, it will face penalties.
- Privacy protection is the number one priority. This means that insurance companies are not allowed to share their customers' personal information with any other institution or agency. An insurance company must honor its customer's request for personal data but is not allowed to share it with anyone else.
- If an insurance company becomes insolvent, a life insurance policy will be backed by the state Life and Health Insurance Guaranty Association.
Buying life insurance is one of the most important financial decisions in a person's life, and Wilcoxon Insurance, Inc., located in Sioux Falls, SD, is here to help you. Call us today to discuss the options and policies available.
